State of Utah Performance Information Procurement System Tests

Abstract

The state of Utah has experienced problems in the procurement of construction. Similar to other states using low-bid, Utah historically has not had construction projects delivered on time and within budget. Faced with critical projects to prepare for the 2002 Olympics, overworked construction project managers, and construction litigation caused by low-bidding contractors, the Division of Facilities Construction and Management tested the Performance Information Procurement System (PIPS) in the fall of 1998 on the University of Utah Housing Project Phase II for the 2002 Olympic Housing. Five other tests were conducted. This article analyzes the differences between the PIPS and the Utah low-bid procurement system, the results of the state of Utah tests, problems, and modifications to the PIPS, and recommendations to future users of the PIPS. Major contributions of this article include the PIPS, Kashiwagi’s Information Measurement Theory, and Zeleny’s Displaced Ideal Model. The objective of this article is to use an information-based business process to procure contractors who deliver on time and on budget and meet quality expectations.